European Competition Policy And Globalization

This book examines the domestic and international dimensions of European Union (EU) competition policy, particularly mergers, anti-competitive practices and state aids. The authors argue that important changes in EU competition policy are having profound effects on the global political economy, and these changes are best understood as European Commission responses to new domestic and international pressures. Using a two-level game analytical framework that is both intra-EU and global in scope, Damro and Guay investigate a wide variety of domestic and foreign public and private actors that interact in crucial ways to determine the development and implementation of EU competition policy. They address this broad question: In what ways do changing external and internal factors affect the evolution of the EU's competition policy and the role that the Commission plays in it? Among the conclusions is that the EU – and particularly the European Commission – has become a leading global regulator.

Competition policy—encompassing cartels, monopolies, mergers and state aid—is a hallmark of the European Union (EU). In recent decades, the EU’s competition policy has evolved under pressures from globalization. The EU in turn has been a key actor driving the globalization of the world economy through its increasingly active competition policy. This volume identifies and explores the major transformations that EU competition policy has undergone in the last decade in response to various pressures related to globalization, in particular, economic interdependence, the proliferation of national and regional competition regimes, and the financial and economic crisis. The individual chapters, written by specialists of EU competition policy from both sides of the Atlantic and from the perspectives of political science, management and public policy, investigate how the EU has responded to these challenges in each area of competition policy, and demonstrate that it has, on balance, been quite successful in responding to them, with some exceptions in the areas of state aid and mergers. This book was published as a special issue of the Journal of European Integration.

. . . highly recommendable to anyone interested in international competition policy. Arndt Christiansen, European Competition Law Review This book provides a comprehensive and refreshing analysis of the competition issues raised by the globalisation of markets. It draws on a very wide range of economic and legal sources to assess the manifold proposals for controlling the competitive forces released by the freeing up of world markets. All those interested in these important and largely unresolved issues will find it an invaluable source of reference. Michael A. Utton, University of Reading, UK and Dongbei University of Finance and Economics, Dalian, China The globalization of market competition and business behaviour fosters globalization of cartels and monopolising mergers that can lead to abusive and predatory strategies. The globalization of competition therefore also demands an internationalization of competition policy. However, Oliver Budzinski is realistic in his assertion that supranational competition governance must be built upon the existing, predominantly national, regimes. The resulting multilevel system of antitrust institutions and authorities, he argues, is problematic for the horizontal and vertical allocation of competences. This book employs the economics of federalism to create an analytical framework which can be used for comparative analysis of stylised competence allocation rules. The result is a proposal for a sound international multilevel competition policy system that combines elements of both centralized and decentralized governance. This book provides an innovative and unique perspective on international competition policy and will be of interest to economists, legal scientists and competition authorities as well as academics and practitioners of international governance and international relations and politics.

This book is a welcome and timely addition to the library of materials exploring the implications of the move from internationalisation of trade towards globalisation. Michael Hutchings, European Competition Law Review This book provides an excellent introduction to the difficult and important issues surrounding international trade and competition policy. Douglas A. Irwin, Dartmouth College, US The opening up of world markets, rapid growth of trade and foreign direct investment create manifold problems for competition policy. Thus, international mergers may have adverse effects on many countries, international cartels may carve up world markets and dominant firms may seek to maintain their global position by exclusionary conduct. These problems have been recognised for more than half a century and some attempts have been made internationally to address them, so far with limited success. This progressive book seeks to explore the problems and concerns that globalisation has created for competition policy. The book begins by setting out the principles of competition and trade policies, and then goes on to address the impact of market globalisation on what are usually thought of as traditional antitrust concerns. These include the analysis of the difficulties arising from collusion and other restrictive practices, government sponsored voluntary co-operation , vertical restrictions and market access, pricing strategies of dominant firms and international mergers, all illustrated with a number of prominent case studies. The author concludes with an illuminating discussion on the feasibility of international co-operation on competition policy, the faltering progress that has been made so far and the prospects for future advances. This comprehensive volume will prove to be an invaluable resource to students and scholars of law and economics. It will also find wide appeal amongst researchers, policy makers and practitioners with an interest in industrial organisation, antitrust policy and globalisation.

The book examines whether EU competition policy is applied fairly and consistently to EU and non-EU firms despite persistent political pressure from member states for a relaxation of the rules and deals with the dilemma of regional organisations in the global political economy. Focussing on the EU’s desire to achieve balance between the promotion of market competition and the enhancement of international competitiveness, the book explores the validity of its attempts successfully to ensure a ‘stringent competition policy’ which is nationality-blind and comparatively strict. Finally, it shows that the competition-competitiveness dilemma remains unresolved because the EU’s capability to set global regulatory standards is constrained by competition and the need to engage in multilateral forums, such as the WTO and the International Competition Network. This book will be of key interest to scholars and students of European Union studies, EU competition law and policy, EU external action and more broadly to global governance, international political economy and international relations.

This insightful book assesses emerging trends in the role of economic analysis in EU competition policy, exploring how it has substantially increased in terms of both theories and methods.

An examination of the development of policy in four main areas - mergers and acquisitions, control of subsidies, the regulation of utilities and the link between trade policy and competition policy. It tries to assess how the Commission is equipped in terms of legal powers and manpower resources.

Mateus and Moreira present a formidable review of pressing issues in competition law and economics. Top officials, judges and experts from Europe and North America offer their insights into analytical issues, practical problems for companies, enforcers and complainants and on the state of trans-Atlantic divergence and convergence. The discussion on national champions and state aid is prescient. Throughout, the analysis is acute, cutting edge, and deep. Officials, counsel and scholars will draw from this fabulous book for years to come. Philip Marsden, British Institute of International and Comparative Law, London, UK Competition policy is at a crossroads on both sides of the Atlantic. In this insightful book, judges, enforcers and academics in law and economics look at the consensus built so far and clarify controversies surrounding the issue. There is broad consensus on the fight against cartels, with some countries criminalizing this type of agreement. However there is also wide debate on the questions of monopolization and abuse of dominant position, vividly highlighted by the recent Microsoft case. Furthermore, there are today diverging views on the interplay of business strategies and the control of market power on both a national and international scale. The book discusses the perennial issue in Europe of the conflicts between competition and industrial policies, once again bringing the theme of national champions to the fore. The contributing authors provide opinion on the efforts which have been made towards modernization in both the USA and the EU. Featuring new contributions by leading scholars and practitioners in antitrust, this book will be a great resource for antitrust enforcers, competition lawyers and practitioners and competition economists, as well as scholars and graduate students in antitrust and competition law.